Minn. Senate to vote on clothing, income tax hikes

ST. PAUL, Minn. - Minnesota's Senate is gearing up for debate on a plan to repeal the longstanding sales tax exemption on clothes.

The Senate convenes Monday afternoon to take up its tax bill. In addition to a new clothing tax, it raises income taxes on the state's highest earners.

Under the plan, individuals who earn $80,000 and up and joint filers with taxable income above $141,000 would see their state rate jump from 7.85 percent to 9.4 percent. The bill's author says that's about 6 percent of filers.

The Senate plan goes further than separate proposals by Gov. Mark Dayton and House Democrats, who both increase income tax burden only for the top 2 percent. The House tax bill does have an additional surcharge on a small slice of even wealthier people.